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MEXICO AND 
OBREGON 

by 
CHESTER W. HANSEN 



A STATEMENT OF FACT 

WITH REGARD TO EXISTING CONDITIONS IN 

MEXICO AND POLICY OF THE 

PRESENT ADMINISTRATION 



OCTOBER, 1921 






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L^ 




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Copyright, 1921, by 
CHESTER W. HANSEN 



By TTansfer 



INTRODUCTION 



The following article is written with the hope 
of the author that the facts therein contained 
will contribute, in a small measure at least, to 
clarify the pitiful lack of understanding which 
seems so prevalent among the people of the 
United States as to Mexico and all things Mex- 
ican — caused largely by inspired anti-Mexican 
propaganda and sensational journalism delib- 
erately intended to make for dissension betw^een 
tw^o peoples whose relationship should be that 
of brothers. 

He believes, in common w^ith hundreds of 
other Americans w^ho have had the opportunity 
to observe at first hand, that the present Mex- 
ican Administration is fully able to cope with 
the situation south of the Rio Grande, and that 
their accomplishments to date justify, yes, make 
it the imperative duty of, our country to accept 
their proffered hand of friendship. 

CHESTER W. HANSEN. 



MEXICO AND OBREGON 

ONE year and five months ago, May, 1 920, 
I the present administration came into 
power in Mexico. General Obregon, 
though always considered the moving spirit of 
the new government, refused to assume the role 
of Executive until requested to do so by the 
people at their duly called and regulated elec- 
tion. Adolpho de la Huerta, therefore, after 
being formally elected by Congress, took the 
oath as provisional president and functioned in 
that capacity until the inauguration of Obregon 
in December, 1 920, after his election by an 
overw^helming majority on September 8, 1 920. 
At this election military force w^as entirely 
absent and not one single instance of disorder at 
the polls w^as reported. General Obregon re- 
ceived more than 1 ,000,000 votes. Considering 
the population of Mexico (16,000,000), one 
person in every 1 6 cast a ballot for him. Ex- 
President Wilson in 1912 received slightly over 
six million popular votes, or slightly less than 
one for each 1 8 of population. 



MEXICO AND OBREGON 

This comparison conclusively shows that his 
election expressed the will of all of the people, 
and w^as not the mock affair w^hich so many 
agencies w^ould have us believe. 

The United States elections of 1 9 1 6 and 1 920 
can hardly be used for comparative purposes 
because of women's suffrage, vsrhich is not 
applicable to Mexico. 

President Obregon laid down a specific 
course to be pursued. These policies speak for 
themselves, and the w^isdom and justice of them 
cannot, nor have they ever been questioned. 
Their execution and the sincerity of the promul- 
gators have been questioned. Therefore, I sub- 
mit a few extracts of policy, together with 
accomplishments to date, so that the reader may 
himself judge the spirit prompting the actions 
of the administration and their sincerity of 
purpose. 

Permit me to quote from a statement by Pres- 
ident Obregon of June 26, 1921, to the New 
York World: 

**The States of Texas, Arizona and Califor- 
nia, acting independently and without the 

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MEXICO AND OBREGON 

slightest inspiration, have made official re- 
quests upon Washington for resumption of 
formal relations that will permit proper and 
complete expressions of friendship between 
Mexico and the United States. The action 
of these States, so intimately in contact with 
my country, tells its own story of peace and 
order along the Border at the moment of 
w^riting." 

NOTE. — Since above was written, the States of Michigan, Illinois 
and Oklahoma, as well as the Chambers of Commerce of the 
dti^ of St. Louis, Los Angeles, San Francbco and others have 
without inspiration done likewise. This action was taken after 
thorough personal investigation and first-hand observation by 
their representative m^nbers on various trade trips through 
Mexico. 

"Today there is not a single armed force in 
the field against the Federal authority." 

NOTE. — ^This condition has continuously prevailed to date. Even 
the ever rebellious Yaqui Indian, who has been in a state of steady 
revolt since the time of the Spanish Conquest, throughout the 
rule of the Great Juarez and the Iron Diaz, has laid down hb 
weapons of war and turned, contented, to peaceful constructive 
pursuits. 

"Reconciliation is our fixed policy. We 
mean to end every hate as far as possible 
and heal every division." 

"One of the first things that the revolution 
did was to call in every history that taught 
the youth of our country to hate the United 
States and Spain." 

[7] 



MEXICO AND OBREGON 

NOTE. — Though handicapped by lack of funds, hundreds of 
schools, with volunteer corps of instructors, have been estab- 
lished and maintained throughout even the remotest sections of 
the Republic as a nucleus of the Elducational System to come. 

Arrangements are practically complete for interchange of 
scholarships with American Universities and interchange of pro- 
fessors as well. This interchange of students and professors can 
not help but form a solid foundation for continued friendship, 
based upon actual knowledge secured through continued res- 
idence and study in the respective countries. President Obregon 
has already made liberal financial contribution for the furthering 
of this cause through the Mexican-American Scholarship 
Foundation. 

**The truest test of peace and order, how- 
ever, is to be found in our army figures. On 
June 1 0, 1 920, the army estabUshment of 
Mexico numbered 23,767 officers and 105,- 
066 men. Today (June 26, 1 92 1 ) the army 
numbers 16,784 officers and 77,289 men, 
an annual saving of $36,500,000. This is 
not the end by any means.'* 

NOTE. — Since the above was written the army has been still fur- 
ther reduced, and announcement made of continued further 
reductions. 

"Instead of carrying the paper money issues 
as a continuing internal obligation, with all 
of the disastrous results w^hich that w^ould 
have meant, w^e abolished the issuance of 
currency, retired the issues in circulation 
quickly and on as just a basis as possible and 
placed business on a gold basis * * * our 
internal debt has been saved from a new bur- 

[8] 



MEXICO AND OBREGON 

den and we are in a better position to take 
care of our external obligations.'* 

NOTE. — ^Today, the entire commerce of Mexico, both internal 
and external, is conducted on a gold basis — nothing but metal 
medium is in circulation. Billions of dollars* worth of currency — 
of many bsues and doubtful value — ^were retired in favor of a 
gold standard. 

**It is not possible to turn in a day to the in- 
stant and satisfactory settlement of com- 
plicated problems and unknown claims 
throughout the revolution. However, we 
stated repeatedly that Mexico would not re- 
pudiate any just obligations. We have al- 
ways paid our debts. We always will pay 
our debts. We have seen a loan of $20,000,- 
000 received in 1824, changed magically 
into a debt of more than $ 1 00,000,000. We 
have seen Maximillian sign an obligation for 
$40,000,000 in return for a loan of $20,000,- 
000. We have seen Miramon, the counter 
revolutionist, sign a note for $1 5,000,000 in 
return for a loan of $750,000. Yet not once, 
even under these outrageous burdens, have 
we ever advanced the idea of repudiation. 
Throughout the revolution, we stated re- 
peatedly that Mexico would meet every just 
obligation without evasion. It is a promise 
that will be kept to the letter. Even now we 
are planning the machinery that will settle 
all claims in accordance with the principle 
laid down by international law. Nor should 
it be forgotten, that as late as six months 

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MEXICO AND OBREGON 

ago, we urged our creditors to send a com- 
mittee to Mexico for conferences in the in- 
terest of fair and honest settlements. 
Strangely enough, acceptance of the frank 
invitation has been prevented by various 
governmental pressure, and to date Mexico 
has not been able to secure these face to face 
meetings that are her desire.*' 

NOTE. — ^Mr. Thomas W. Lamont, a representative of the Inter- 
national Committee of Bankers on Mexico, b now in that country, 
in response to a further invitation from the Mexican Government. 
To date no action has been taken by our Government in regard 
to participation in conferences invited by Obregon to discuss 
ways and means of arriving at equitable adjustment of claims. 
It can be readily conceived that Americans fleeing Mexico at the 
instance and persuasion of our Government, who later filed claims 
with our State Department for damages caused by confiscation, 
etc., during the revolution, would place their damages at a max- 
imum, and such claims are certainly subject to adjustment. 

* 'Foreign capital will be invited and given 
every justice * * *. Every private right 
acquired prior to May 1st, 1917, w^hen the 
new constitution ^/vas adopted, will be ac- 
cepted and fully protected. The famous 
Article 27, one section of which declares the 
nation's ownership of subsoil rights in petro- 
leum, will never be given retroactive effect, 
nor has it ever been given retroactive effect. 

•!• •!• "I* 

» 

*'Here are the figures for exportation of 
Mexican oil year by year since 1917: 

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MEXICO AND OBREGON 

1917 42,545,852 Bbls. 

1918 51,768,110 ** 

1919 77,703,289 '* 

1920 151,058,257 ** 

1921 (Jan. to May 

inclusive).. 76,493,564 ** 
1 92 1 probable 

production.. 190,000,000 " 

**Does this steady increase indicate that the 
Mexican Government has been placing any 
obstacles in the w^ay of development?" 

NOTE. — ^August 30th the Supreme Court of the United States of 
Mexico rendered a decision to the effect that Article 27 could not 
be construed retroactively. 

**As for recent tax increases, the necessity 
should be clear to all. Every country in the 
w^orld has had to increase their taxes in order 
to meet increased expenses. In addition, 
Mexico is facing delinquent obligations that 
must be met. The increase in petroleum, for 
instance, is for specific application to our for- 
eign debt. To this purpose and this purpose 
alone, the entire proceeds of the tax will be 
devoted. I stated this clearly in the decree 
that established the tax and there will be no 
departure from it. To call the tax, confisca- 
tion, as the oil group is doing, is absurd 
* * * for even while earning enormous 
dividends, out of the oil taken from Mexican 
wells, it is still unwilling for Mexico to re- 
ceive even an appreciable share of its natural 

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MEXICO AND OBREGON 

wealth, as an aid in meeting the just de- 
mands of the holders of our foreign obliga- 
tions. It is these dividends that give the best 
ansv/er to the cry of confiscatory taxation. 
The net profits of the Mexican Petroleum 
Company in 1 920, after depreciation and 
taxes, were $9,773,898. (This on a capital- 
ization of $48,000,000.) Its interlocked as- 
sociate, the Pan American Petroleum & 
Transport Company, declared net profits of 
$12,987,757, in 1920, after deducting in- 
terest charges, taxes and contingencies. The 
British American Petroleum Company, 
another rich subsidiary formed in order to 
avoid the scandal of lumped earnings, 
showed a profit of $5,000,000 in 1 920. It 
w^ill thus be seen that the Doheny group 
pumped close to $28,000,000 in net profits 
out of the soil of Mexico in the single year 
of 1920." 



NOTE. — During August, 1921, the American group of oil pro- 
ducers of Mexico, represented by W. C. Teagle, President of the 
Standard Oil Company; E. L. Doheny, President Mexican Petro- 
leum Company; H. F. Sinclair, President Sinclair Oil Company; 
J. W. Van Dyke, President Atlantic Refining Company, and 
Amos L. Beatty, President Texas Company, attended a series of 
conferences with officials of the Mexican Government, the result 
of which was the announcement by the American Committee 
that a satisfactory taxation agreement had been reached, and 
they began the exportation of oil the day following. The text of 
this agreement has not as yet been made public. A few days 
later, the Mexican Petroleum Company declared its regular 
quarterly dividend (12% annually) which throughout the entire 

[12] 



MEXICO AND OBREGON 



period of the taxation controversy had been neither postponed 
nor reduced. 

It would be exceedingly difficult for anyone 
to elaborate on the above. The policies speak 
for themselves and the accomplishments to date 
sustain them sufficiently to compel the con- 
fidence of the w^orld in the assurance that they 
will be carried out to their fullest limit. 

I do, however, wish to call the attention of 
the reader to a few facts w^hich reflect the suc- 
cess of the policies of the present administration 
during the short period in which they have been 
in pow^er. 

The Government of Mexico took over the rail- 
roads during time of stress in much the same 
manner that the United States took over our 
railways during the recent w^ar. These are being 
rapidly returned to their owners, but only as 
they are restored to their normal state. As to 
the w^isdom of this policy w^e need look no fur- 
ther than the chaotic condition in v^hich w^e find 
our railroads today, and the hundreds of mil- 
lions of dollars of claims against our Govern- 
ment because of the conditions surrounding 
their return to private ownership. One railway 

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MEXICO AND OBREGON 

in Mexico has already been returned, the Mex- 
ican Railway, a British property extending from 
Vera Cruz to Mexico City. This was possible 
because of its small mileage and the fact that it 
has suffered least. The Southern Pacific Rail- 
road, wth its large mileage, w^as never taken 
over by the Government. Every cent of rail- 
road revenue is being devoted to reconstruction 
in a vigorous attempt to restore them to their 
normal condition. In the past few^ months 
$5,000,000 of the Government's own funds 
have been spent for rolling stock and the day is 
near at hand w^hen the national lines can be re- 
turned to their ow^ners in such shape as to make 
damage claims fairly simple of ascertainment 
and adjustment. 

When consideration is given to the fact that 
Mexico has a far greater railroad mileage per 
capita than either the United States, the United 
Kingdom, Germany, France or Italy, the task 
which confronted them in the rehabilitation of 
these lines can more easily be realized. 

The follow^ing figures prepared by the United 
States Department of Commerce show^ the 

[14] 



MEXICO AND OBREGON 

actual railroad mileage of these countries, for 
each 10,000 inhabitants: 

United States 2.5 Germany 5.8 

Italy 3.2 France 8.5 

United Kingdom 5.1 Mexico 10.2 

Land taxation is being readjusted on a basis 
which will make the holders of vast acreage 
bear their just proportion of taxes, and w^ill in 
itself compel these holders to either subdivide 
and dispose of, or develop, their holdings. Land 
banks have been established, and a plan of rural 
credits is in the process of formation. Coloniza- 
tion schemes are under w^ay and great irrigation 
projects are being w^orked out. It is the hope of 
the administration to, in a short time, double the 
arable acreage of the nation. The Mexican is at 
heart an agriculturist. Encouragement and as- 
sistance is all that is necessary to make for tre- 
mendously increased agricultural development. 

The attitude of the Mexican citizen towards 
the American is one of friendship, spectacular 
propaganda to the contrary notw^ithstanding. A 
few months ago the author communicated vsrith 

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MEXICO AND OBREGON 

several hundred leading American business 
men, in every section of the United States, who 
had recently visited Mexico. He requested their 
opinions. Of the hundreds of replies received, 
not one expressed anything but the strongest 
feeling that the present administration should 
be recognized without delay, and w^ere pleas- 
ingly surprised at the sincere demonstration of 
friendship tow^ard the Americans and at w^hat 
they saw. Extracts from a number of the let- 
ters are attached. 

Our exports to Mexico have increased from 
$41,066,775 in 1915 to $131,455,101 in 1919, 
$143,786,000 in 1920, and the first seven 
months of 1921 show exports of $155,699,499, 
an increase of 61% over the same period in 
1920. With one exception Mexico wsis the only 
country to whom our exports increased during 
that period — our total exports showing a de- 
crease of 42%. Significant of this is the fact 
that no complaints arising out of our Mexican 
commerce during that period have been filed 
with the State Department, while those arising 
out of trade with other Latin-American coun- 
tries were considerable. 

[16] 



MEXICO AND OBREGON 

The national debt of Mexico per capita is by 
far the lowest of any major country in the 
"world. Note the following comparison: 

England $ 824.78 

Italy 396.60 

France 1,1 14.26 

Germany 797.57 

Canada 290.00 

United States 235.96 

Mexico 24.34 

NOTE. — ^Above figures taken from Report of International 
Financial Conference, called by League of Nations at Brussels, 
July, 1921. Of further importance is the fact that all of Mex- 
ico's loans were incurred during a period when low interest rates 
prevailed. Her interest per capita per annum, therefore, pre- 
sents even a more striking comparison than the above. 

Attached are statements by Samuel M. Vau- 
clain, President, Baldwin Locomotive Works; 
and Elmer Dover, financier of Tacoma, Wash- 
ington, and former Secretary of the National 
Republican Committee. These men are leaders 
in their lines of endeavor in this country. Their 
judgment and ability to analyze a situation, as 
w^ell as their Americanism and honesty of pur- 
pose, is most certainly unquestioned. These 
men have very recently been in Mexico — ^have 
seen the existing conditions and unbiasly studied 

[17] 



MEXICO AND OBREGON 

them. Their opinions must be given worthy 
consideration. 

President Obregon and his administration 
stand squarely on the policies they have estab- 
lished and ask us to judge their ability to carry 
them out and their sincerity of purpose, by their 
administration to date. 

Mexico asks no quarter, but is keenly sensi- 
tive of the good which can only spring from 
w^hole-hearted cooperation wth this country, 
and, rising phoenix-like from out the ashes of 
ten years of chaos and revolution, extends to us 
the hand of friendship. Shall v^e accept her 
offer so sincerely made, or shall w^e compel her 
to look across the seas for the friendship which 
should so rightly come from us — her big 
brother — w^hose aims and aspirations are 
identical? 



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MEXICO AND OBREGON 

Statement of 
SAMUEL M. VAUCLAIN 

To WASHINGTON TIMES 

Under date August 26, 1921 

The United States should recognize President 
Obregon as chief executive of Mexico, accord- 
ing to Samuel M. Vauclain, president of the 
BaldTArin Locomotive Works. Mr. Vauclain has 
traveled extensively in Mexico, and is thor- 
oughly conversant with the problems and situa- 
tions existing in the various parts of that 
country. 

**I feel that President Obregon is an excellent 
man," said Mr. Vauclain yesterday. 

**Mexico as a country is in excellent condi- 
tion. The government is good, and the Pres- 
ident seems to have the situation w^ell in hand. 
He has a most excellent character, fine address, 
is modest, yet forceful. He is anxious to do his 
best for Mexico, and has a deep sense of respect- 
ful admiration for the United States. 

**I "was so well impressed w^ith him and his 
subordinates, including the railroad officials, 

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MEXICO AND OBREGON 

that I have no hesitation in doing business with 
them just as I would with firms in the United 
States. 

**Their railroads are in good condition, the 
roadbeds excellent, in fact, better than many 
roads in the United States. They are at work 
all the time improving their roads. I think it 
would be a great thing for this country if the 
State Department w^ould consistently recognize 
Obregon, and I have no doubt that an early de- 
termination of this question v/ill be had. 

**1 think President Obregon is inclined to 
meet the view^s of our Government as far as pos- 
sible. No doubt in the near future a satisfac- 
tory understanding wrill be arrived at permit- 
ting his recognition. 

"Of course, this is not any of my business. 
I am president of a locomotive works, w^hile Mr. 
Hughes is head of the State Department. He 
know^s best w^hat to do, as he seems to be built 
that way. 

*'The credit of Mexican railways is O. K. w^ith 
me — I don't know^ how it is w^ith others in this 
country.'' 

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MEXICO AND OBREGON 



Statement by 
ELMER DOVER 

Financier of Tacoma, Washington and Former Secretary 
Republican National Committee 

**I have made several trips through Mexico 
within the present year. 

"My observations convince me the Obregon 
Government is doing all w^ithin its power to re- 
habilitate their country and that their efforts are 
not only sincere, but are producing the desired 
results. 

*'I know President Obregon personally. ^14e 
is a man of great force and absolute honesty. 
His attitude of friendship tow^ards the United 
States is prompted only by sincerity. 

"The enormity of the task of rehabilitation is 
not questioned, but with recognition and moral 
support of our Government 1 feel very sure that 
the present administration is equal to it." 



[211 



EXTRACTS FROM 
STATEMENTS OF 

AMERICAN 
BUSINESS MEN 



EXTRACTS FROM STATEMENTS OF 
AMERICAN BUSINESS MEN 



R. H. Baumbach, Manager, Eugene Dietzgen Co., New Orleans 

"There is no doubt in my mind but what conditions at pres- 
ent are much better than they have been for many years, and 
that no stone should be left unturned to bring us in closer rela- 
tions with our neighboring country, which will surely be to our 
mutual advantage." 

£. J. Krause, President and Treasurer, The Willis Coal & Mining 
Co., St. Louis, Mo. 

"I am strongly of the opinion that our Government should 
recognize Mexico and should lend them a helping hand and 
treat the Mexican people as an independent nation, capable of 
self government, and do everything to promote a better feeling 
between the two nations." 

Harvey W. Page, President, Eastern Engineering Co., Boston, 
Mass., and Tampico, Mexico 

"It goes without saying after living four years in the Republic 
of Mexico, that I am greatly interested in its welfare. I wish 
I w^ere able to assist every American in the United States to un- 
derstand what our relations and responsiblities are to that coun- 
try, as it is of great vital interest from a standpoint of commercial 
affairs and also from the standpoint of from 15 to 20 million 
Mexicans and our own population. 

"The writer's opinion is that the United States is not receiv- 
ing (the general public, I mean) facts, but are receiving opinions, 
which many times are unfair to both parties and both countries. 

"Answering one of your questions, 'Do you think the present 
Mexican government have accomplished what w^ould be ex- 
pected?' It is my personal belief that the present Obregon 

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MEXICO AND OBREGON 

Government has done wonderfully well, considering the many 
serious handicaps that they have had to encounter, and should 
receive every reasonable encouragement from us that can be 
given them. * * * It is my opinion that we are causing more 
trouble in the Republic of Mexico than they could possibly cause 
themselves/' 

W. M. Lampton, President Magnolia Bank, Magnolia, Miss. 

"An impression exists in Mexico that the American capitalist 
who goes to that country has only an ulterior motive, as a mere 
exploiter. In some measure this may be true. Under the pres- 
ent administration, all this, it seems to me, could be easily cor- 
rected. Sensational papers — both in this country and Mexico — 
are in a large measure responsible for this condition. Their 
activities should be suppressed." 

Frank Wiggins, Secretary, Los Angeles Chamber of Commerce 

"I feel quite sure that our party, generally speeiking, felt 
convinced that the future in Mexico depended upon a stable 
government and that Obregon is the best man to institute this. 
* * * Steady progress is being made. 

"One of the things we discovered was that Mexicans have 
learned to distrust Americans because of the few who have ex- 
ploited them and misrepresented their own country. Because of 
the horrid stories of the past ten years, the average American 
has come to believe Mexico is a land of thieves and cut-throats. 
We believe it will take an extended period of fair dealing with 
the Mexicans to win their confidence." 

H. D. McKinnon, Vice-President and Treasurer, The Braun Cor- 
poration, Chemicals, Los Angeles, Calif. 

"I am very anxious to see pleasant and cordial relations be- 
tween Mexico and this country, knowing full well that both 
countries would benefit therefrom. I will be glad to cooperate 
with you fully — in trying to make for both pleasant relations 
between the two countries and so counteract some of the sensa- 
tional journalism that has a tendency to keep the two countries 
apart." 

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MEXICO AND OBREGON 

Extract from Resolution Passed by Board of Directors, San Fran- 
cisco Chamber of Commerce; Athol McBean, President 

"Therefore, be it resolved, That the board of directors of 
San Francisco Chamber of Commerce favors at the earliest mo- 
ment compatible with the Government's foreign diplomatic pol- 
icy, consideration by the Government of the United States of 
America of the question of extending recognition to the present 
Government of the Republic of Mexico." 

Maynard McFie, President Los Angeles Chamber of Commerce 

"Our country has been misled by the impressions that have 
been given of Mexico for the past ten years. We have heard 
only the bad side. We should make it our business to learn 
something of the good side. 

"Our own country developed broader ideals and better un- 
derstanding through its civil strife and was united for the best 
interests of all. We had first a Washington and then a Lincoln. 
If Obregon lives up to promise, he will be the Lincoln of Mex- 
ico and will proceed with a reconstruction program that will 
immortalize his administration." 

Extract from Resolution Passed by St. Louis Chamber of 

Commerce 

"The present Chief Executive has apparently won the sup- 
port of most elements — at least he has eliminated a great amount 
of the distrust and suspicion that finally became so detrimental 
in other administrations. It is realized that any government es- 
tablished has a colossal task in bringing about peaceful pursuits 
and uninterrupted commercial intercourse aften ten years of 
turmoil, but, from what we observed, the present official, of all 
his ten predecessors since Diaz, comes nearer than any of them 
to embodying the qualifications for this difficult leadership to 
peace and happiness. 

"President Obregon's efforts so far look toward a unity of 
most of the factions, he seems democratic, and in all his actions 
pro-American — remembering in this, however, that he has the 
sovereignty of a nation to maintain. 

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MEXICO AND OBREGON 

Report of Committee of Los Angeles Chamber of Commorce 
After Vbit to Mexico 

"Mexico has had ten presidents within this period. It is 
therefore Httle wonder that there should have been questioning 
and doubt as to the new regime. President Obregon, however, 
appears to be the man of the hour in Mexico. He has won the 
support of all elements, inspiring hope and optimism in the 
future, where there has been suspicion and distrust. 

"For the first time in nine years the country is wholly at 
peace and has been since the overthrow of President Carranza. 
Every railway of the Republic is operating without armored cars 
or armed guards/' 

Ritchie L. Dunn, President, American Bbcuit Company, San 

Francisco, Calif. 

"Your letter of the 8th containing a very concise and clear 
statement of conditions as they exist today in Mexico, with rela- 
tion to the understanding or lack of understanding between the 
peoples of the two republics, has been read with a great deal of 
satisfaction, and I hasten to say that upon further suggestion I 
will be only too glad to lend my personal aid in the manner 
to be suggested. 

"Thanking you for your courteous letter, I am." 

M. Schmidt, Schmidt Lithograph Company, San Francisco, Calif. 

"Of course, the approaching of the American and Mexican 
peoples, and an understanding between them, is not only de- 
sirable, but a necessity. Frankly speaking, I believe the absence 
of this friendly feeling is more the fault of ours, who right down 
in our hearts are considering ourselves superior to the Mexicans 
in most every respect. But are we justified in doing so? It may 
sound strange to American ears when I repeat as my own expe- 
rience the statement made to me by large numbers of newly made 
friends, over there, who were familiar with both countries, that 
personal safety was far greater in Mexico than in our own 
country. * * * 

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MEXICO AND OBREGON 

"What impressed me further was that In spite of the almost 
toted destruction of manufacturing and agricultural enterprises 
by ten years of revolution, they never see any money except cop- 
per, silver, and gold — no paper promises. * * * 

"It would lead me too far to describe results of my numerous 
interviews with Mexican business men — particularly the German 
element. Their strong influence in Mexican affairs is perhaps 
best illustrated by their three very extensive and modern up-to- 
date German clubs — comprising large buildings containing first- 
class restaurants, libraries, theatrical stages, bowling alleys, bil- 
liards, dance halls, etc. Compare this to the one Mexico City's 
Amierican Club consisting of a rented few rooms, and then think 
that w^e are their next door neighbor. Strangers almost instead 
of close friends. 

"Mexico is known to be a country rich in minerals and other 
natural assets, including cheap labor, and is awaiting, now that 
revolutions have stopped, the hands of capital and enterprise. 
Who shall be the leader? If we do not stop sneering and agitat- 
ing, Europeans will reap that rich harvest offered to, but de- 
clined by, us." 

Louis Housmann, New Orleans, La. 

"I believe the people there are in a receptive mood to have 
amicably adjusted friendly relations with other countries, and 
believe the present Mexican Government will be successful in 
establishing better conditions there and with other countries." 

Jerome R. George, Worcester, Mass. 

"I have been in Mexico but once and then only for a few 
weeks. I do not feel that I know a great deal about the country 
or the people, but I am quite free to confess that when I was 
there last March I was greatly surprised and pleased with what I 
saw — particularly the Mexican people. 

"On every hand I saw evidence of a sincere desire on the 
part of the Mexican people to establish business and personal re- 
lations with the people of the United States. I found the Mex- 
ican people of all classes courteous to strangers and considerate 

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MEXICO AND OBREGON 

of each other. Neither in the city nor in the country did I see 
any conduct on the part of the Mexicans that could be criticized 
by 3ny one. It seemed to me that in their customs and manners 
they could teach us a good deal here in the States. 

"I consider Mexico City one of the finest cities I have ever 
seen. The city streets were well paved and well kept. There 
seemed to be approximately as many automobiles there as in any 
of the cities of the States. 

"I find that comparatively few Americans have visited Mex- 
ico and that as a consequence the people in the northern part of 
the United States know much less about Mexico than they know 
about the various countries of Europe and Asia. 

"I have been following conditions in Mexico as well as pos- 
sible, and I have a rather strong impression that Obregon is ca- 
pable of maintaining law and order. This is something that is 
not too well done in many parts of the United States. * * * 

"I see no reason whatever why full political and commercial 
relations cannot be re-established. The United States should be 
strong enough to protect the interests of its citizens in Mexico 
and reasonable enough not to defend any citizen who willfully 
violates the laws or hospitality of another country." 

R. J. Morrell, Treasurer, Rivers Brothers Co., Wholesale Produce, 
Los Angeles, Calif. 

"In answer to your letter of July 2 1st, will say that all of our 
dealings with the Mexican people have been very satisfactory, 
and we feel that most of the trouble comes up on account of not 
understanding how to deal with them. * * * 

"We think there is a great field in Mexico and if the different 
Americans go at the business in the proper way, think they will 
have no trouble whatsoever. 

"When the writer made a trip down there, they treated the 
party royally and could not do enough for us, showing that they 
were anxious for our trade. * * * Most every one that the 
writer met informed him that they w^ere anxious for Americans 
to come in there and settle and also wanted to do all business 
possible with them." 

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MEXICO AND OBREGON 



J. W. Souther, San Francisco, Calif. "Addressed to Hon. Samuel 
M. Shortridge, U. S. Senator from California" 

"I take the Hberty of addressing you relative to the Mexican 
situation, feehng that an unbiased opinion from one who has 
visited that country twice since the first of this year and who has 
first hand knowledge of conditions there would be of assistance 
to you in your deliberations upon this vital question. 

"I have no interests in Mexico whatsoever, therefore my pur- 
pose in addressing you is not a mercenary one, but simply a 
desire to correct, if possible, erroneous reports promulgated by 
unreliable publications and by those whose personal interests 
would benefit by such reports. 

"I have interviewed bankers, business men, foreign consuls 
emd others and their universal opinion is that if President Obre- 
gon received the proper and just support of our country, Mexico 
will experience a revival of business and consequent prosperity, 
which naturally will reflect to this country, only felt during the 
regime of Porfirio Diaz, in fact, to quote two very prominent 
business men ad verbatim: 'We consider the present President a 
second Diaz.' 

"I have met the General casually and feel that he is absolutely 
sincere in his desire to uplift his people and cement friendly rela- 
tions with this country. It was a most agreeable surprise to me 
upon m.y first visit to Mexico to find an utter lack of disrespect 
to the American, and I can truthfully state from the time we, the 
San Francisco Chamber of Commerce excursion, crossed the bor- 
der at New Laredo, Mexico, and during our stay in that country, 
not one of the party suffered any discourtesy w^hatsoever; on the 
contrary, we were treated with the utmost respect and con- 
sideration. 

"I experienced similar treatment upon my recent visit to 
Mexico City, from whence I have just returned, and I may add 
I expect to return there the latter part of this month with nothing 
in view other than to await developments and investments pro- 
vided equitable relations are established between the two repub- 
lics, which undoubtedly would inure to the mutual benefit of both 
countries." 

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MEXICO AND O 




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Charles P. Vogel, Secretary, The Third (Regular) Divisioi 
Society, The Mame Division, Milwaukee Branch, Wisconsin 

"I think Obregon is headed in the right direction, and if soni< 
of our American interests do not try to force him to show hi 
hand prematurely, which would cause too many factions to bi 
turned against him before he was strong enough to handle then 
all, he will set up a government in the southern republic whicl 
can be relied upon." 

Alan P. Gilmour, Asociacion Intemacional de California (Latin 
American Trade Bureau), Los Angeles, Calif. 

***** Our Bureau is doing what it can to counteract th 
pernicious propaganda that is endeavoring to thwart recognitioi 
of the present stable and friendly administration in Mexico City 
We hope that your and our efforts will eventually meet w^itl 
success, and that the powerful mercenary interests that are nov 
endeavoring to promote strife and cause intervention will be sig 
nally defeated." 

Robert L. Morris, Jr., President, Austin Machinery Corporatioi- 
of Louisiana, Inc., New Orleans, La. 

**I have traveled all over Mexico and know conditions thert 
very well. I do not hesitate to say that the press in this countr 
do Mexico a rank injustice and create a false impression of tha 
country among our people and our Government officials. * * •• 

'*! know President Obregon personally and regard him as • 
great and just man, a thorough patriot, acting for the best in 
terests of all concerned and is accomplishing wonderful result- 
considering the heavy handicaps before him. 

"I am going to Mexico tomorrow and will travel from the 
Isthmus of Tehuantepec to the Rio Grande and will feel just as 
safe there as I would in this country." 



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LIBRARY OF CONGRESS 

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